How can you ensure your supply chain is protected at every stage?

Get A Trade Credit Insurance Quote

Our international team of trade experts is here to help. Contact us to learn more about our coverage options for the Plastics and Chemicals Industry or request a free, no obligation quote that includes credit reports for your largest trade partners.

https://www2.atradius.us/l/129871/2020-04-01/376q5z

Plastics and Chemicals Industry

 

 

plastics industry

The U.S. plastics and chemicals sector is operating in one of its most complex environments in decades. Persistent geopolitical tensions, volatile feedstock prices, and tight credit conditions continue to pressure margins. At the same time, 2025–2026 is bringing a wave of PFAS restrictions, state‑level EPR laws, and accelerated sustainability mandates that require significant investment.

Demand remains uneven: consumer goods and packaging have softened, while automotive, construction, and medical plastics are stabilizing. Many SMEs are feeling the squeeze as financing costs remain elevated and customers delay payments to preserve cash.

Atradius helps plastics and chemical businesses navigate this uncertainty with real‑time buyer risk insights, global market intelligence, and protection against non‑payment so you can grow with confidence.

 

Curious About Pricing?

Atradius is here to help. Contact us to learn more about our coverage options or request a free, no obligation quote that includes credit reports for your largest trade partners.

Plastics price fluctuation
Price Fluctuations Drive the Market

Feedstock volatility remains a defining challenge. Geopolitical instability in Europe and the Middle East continues to disrupt global energy markets, causing unpredictable swings in natural gas and petroleum‑based inputs. These fluctuations directly impact resin pricing, production planning, and working capital needs.

Atradius supports your business with:

  • Market insights to anticipate cost and supply disruptions
  • Buyer risk assessments to identify customers vulnerable to margin pressure
  • Non‑payment protection to stabilize cash flow during volatility
Plastics diverse end markets
Versatility Comes at the Cost of Sustainability

Plastic production could triple by 2050, according to the World Forum. This comes with an impact on the environment as U.S. plastic emissions are projected to surpass coal emissions by 2030. To align with more sustainable options, some companies are moving away from single-use plastics. But many fossil fuel companies see plastics production as an investment opportunity in the wake of decreased demand for non-renewables. In the wake of rising costs from global efforts to reinforce sustainable practices despite the ever-increasing demand for plastics, Atradius will be there to help you predict which customers are financially sound and which are unstable before you’re left without payment.

Plastics environmental regulations
Adhering to Complex Environmental Regulations

2025–2026 is a turning point for environmental compliance. New PFAS phaseouts, emissions reporting requirements, and waste‑management rules are increasing operational costs across the sector. Compliance failures can lead to steep penalties, lost contracts, and reputational damage.

Atradius reduces your risk by:

  • Monitoring buyer payment behavior for early signs of financial strain
  • Flagging customers struggling with compliance‑related costs
  • Providing global regulatory insights across your supply chain
plastics sustainability and consumer preferences
Sustainability and Consumer Preferences

Consumers and downstream manufacturers are demanding greater transparency, traceability, and environmental responsibility. This shift is driving rapid growth in green chemistry, bio‑based plastics, and recycled‑content materials.

Companies that adapt quickly are gaining market share, while those that delay investment face shrinking demand and increased credit risk.

Atradius helps you identify which customers are positioned to grow—and which may fall behind as sustainability expectations rise.

plastics stable default assessment
Stable Default Assessment

While the chemicals sector has historically maintained lower insolvency rates, the current environment is testing weaker players. High interest rates, slower demand in key segments, and rising compliance costs are increasing financial stress for SMEs.

Atradius provides ongoing monitoring so you can adjust credit decisions before problems arise.

plastics regional cost competitiveness
Energy Cost Competitiveness

North America continues to benefit from relatively competitive energy prices, but volatility remains a concern. Global supply disruptions, LNG demand shifts, and geopolitical tensions can quickly impact resin and chemical pricing.

Atradius helps you evaluate how energy volatility affects your customers’ financial stability and creditworthiness.

Plastics quote

Our business grew 25% last year, and I can confidently attribute 5% of that to Atradius.

Larry BeardPresidentEnCom Polymers

Benefits to Credit Insurance

Trade credit insurance is a risk management tool that can help protect your company’s commercial accounts receivable from the devastating effects of loss caused by a bankruptcy or protracted default of your buyers. No company wants to face the unknown. At Atradius, we give our clients peace of mind knowing that their policy protects them from a customer’s sudden inability to pay. Especially in an industry that must adhere to high-cost environmental regulations, trade credit insurance can help with cash flow and to ensure companies are financially stable.

Risk Management

Atradius analyzes industry trends and the risk of every buyer to ensure you are working with stable customers. If a previously stable customer starts showing signs of deteriorating payment trends, we alert you right away so you can take steps to protect and ensure your accounts receivable. We evaluate the supply chain from each angle and can alert our clients to trouble coming down the pipeline before there is a loss.

Sales Expansion

For companies seeking to safely grow sales, working capital is essential. If your company doesn’t feel comfortable increasing existing credit lines or initiating credit lines in new markets, we can help. We are a global company with a presence on every continent. Our innovative services provide you with the practical tools you need to manage your receivables, building the foundation for solid business growth and success.

Increased Funding Options

Companies in the midst of an intense growth phase may need to put up accounts receivable as capital to receive additional funds from a bank. Having a trade credit insurance policy with Atradius that mitigates your risk means banks are more comfortable loaning the funds you need.

Cost Effective

Our policies are cost effective. On average, the rate we charge falls to less than one half of 1%. If a company sets aside a debt reserve of 5%, our services are extremely cost effective, because with our coverage you will always get any lost money back.

Get Your Questions Answered or Request a Quote

Atradius is here to help. Contact us to learn more about our coverage options or request a free, no obligation quote that includes credit reports for your largest trade partners.